Just one company began trading in the shortened week that marked the end of 2019. Three healthcare companies and a SPAC submitted initial filings.
For an in-depth look at the 2019 US IPO market, download a free preview of Renaissance Capital’s 2019 US IPO Annual Review, or sign up for a free 7-day trial of IPO Pro to view the full report.
Chinese chemicals e-commerce firm Molecular Data (MKD) priced at $5.38, below the midpoint of the $5 to $7 range, to raise $62 million at a $684 million market cap. The company was China’s largest e-commerce platform for chemicals by gross merchandise value in 2018. Likely sold to Chinese investors, Molecular Data initially traded as high as 121% above offer, but finished down 19%.
| 1 IPO During the Week of December 30th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 01/03 |
| Molecular Data (MKD) | $62M | $684M | -10% | +2% | -19% |
| Offers e-commerce, software, and other services to Chinese chemicals companies. | |||||
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Phase 1 cancer biotech Black Diamond Therapeutics (BDTX) and health clinic chain 1Life Healthcare (ONEM), also known as One Medical, both filed to raise $100 million. Topical treatment producer Avadim Health (AHI) and Asia-focused SPAC Newborn Acquisition (NBACU) both filed to raise $50 million.
| 4 Filings During the Week of December 30th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| Black Diamond Tx (BDTX) | $100M | Health Care | JP Morgan |
| Phase 1-ready biotech developing targeted kinase inhibitors for solid tumors. | |||
| Newborn Acquisition (NBACU) | $50M | SPAC | Chardan |
| Blank check company led by equity investment veterans targeting businesses operating in Asia and the US. | |||
| One Medical (ONEM) | $100M | Health Care | JP Morgan |
| Membership-based health clinic operator with 77 locations. | |||
| Avadim Health (AHI) | $50M | Health Care | Raymond James |
| Develops and sells topical treatments for immune, muscular, and skin health. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/2/20, the Renaissance IPO Index was up 1.8% year-to-date, while the S&P 500 had a gain of 0.8%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Spotify (SPOT). The Renaissance International IPO Index was up 1.0% year-to-date, while the ACWX was up 1.2%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.
